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By D. Rahal, I. Shah, B. Hines, S. Reddick

"The development of stirred milling technology has proven to be an enabling technology in fine grained metallic deposits. The increased grinding efficiency allows for the economic size reduction required to produce saleable concentrates. This improvement has opened the door to retreatment projects such as reprocessing of historic gold mine tailings. Recently a VXP2500 stirred mill was installed at Casmyn Mining Zimbabwe Turk mine to allow the reprocessing of historic mine tailings. After commissioning, an extensive joint research project between Casmyn and FLSmidth Minerals was conducted to optimize the performance of the mill. This paper outlines the challenges encountered in the optimization program and the outcomes from the joint research project.INTRODUCTION The development of stirred mills has opened up many new opportunities to recover valuable minerals from refractory ores. Stirred mills have already been reported as an enabling technology for the processing of fine grained ores in lead/zinc applications (Pease, Young and Curry, 2005). Historically, conventional ball mills were unable to economically grind material fine enough to produce the required recovery or concentrate grade. This often resulted in the loss of valuable materials to the final plant tailings. The advent of stirred milling has now provided an opportunity which has both economic and environmental benefits, the reprocessing of historic mine tailings. Many tailings stockpiles now contain economic concentrations of gold because of the ability of stirred mills to efficiently and economically grind the tailings to liberation sizes. The primary advantage of reprocessing historic tailings is very low cost processing. Recovering the tailings is usually as simple as pumping the material into the reprocessing circuit. The disadvantage of reprocessing tailings is the low feed grade and greater difficulty in recovery valuable minerals at the same size distribution. The material has already been previously processed so fresh surface area or an increase in metal exposure is required. These are both provided by regrinding the tailings material."

Jan 1, 2014

By Patrick Frenette

The Goldex Mine is an underground gold mine using a unique mining method where a single very large stope is being created. In order to maintain stability of the walls and roof of the stope which is 450m, 250m high and up to 120m thick, ore is left in the stope as long as possible and acts as backfill would do. At many occasions during the mining sequence, the walls will be exposed on height ranging from 30 meters up to 250 meters. A monitoring system comprising in-stope laser surveys, a seismic system and an array of extensometers and sloughmeters all remotely connected to surface is used to observe the shape and evolution of the stope. This paper will focus on the results obtained following some of the large blasts and on the long term monitoring of the stope.

May 1, 2011

By Yaw Boadi, Andrew McCallum, Sandy Gray, Yavuz Atasoy, Peter Wemyss

"Various full-scale test programs and installations of the InLine Pressure Jig (IPJ) have provided evidence that pre-concentration of the difficult to leach sulphide mineral through gravity can provide significant increases in economic recoveries. The continuous gravity concentrates are intensively treated either by re-grinding or Intensive Cyanidation. Data from various mine sites worldwide is presented. Treatment of complex ore bodies with this low cost methodology may render previously uneconomic ore bodies financially viable and assist in the recovery profile of transitional ore.INTRODUCTIONThe use of gravity is made extremely attractive in complex ore situations due to the low cost of operation, typically a few cents per ton operating cost and lack of chemicals.Gold mines which suffer from poor recovery due to complex mineralogy such as Stibnite, Arsenic, Carbon, Telluride, Silver and other pacifying agents such as Iron, which can form coatings, can all benefit from the process proposed in this paper. The key issue is not overall recovery as much as one of economic recovery. The key to this is maximised recovery at the lowest possible capital and operating cost. Other options such as flotation are reviewed but are not seen in many instances to be the panacea due to issues discussed in the paper. The use of the InLine Pressure Jig in the re-circulating load of the milling circuit is a cost effective means of recovering a sulphide/gold concentrate containing the complex mineral assemblages which require re-grinding and intensive leaching for optimised gold recovery.The benefits of Jig Assisted Grinding (JAG) are many and the challenge over the past years has been developing, understanding, implementing and evaluating the benefits of various flowsheet models. This has involved the reconciliation of results in plant scale trials back to the original laboratory test program. The following paper outlines the insights gained in this area through extensive work carried out by many people across both laboratories and plant sites in Australia and overseas. The examples in this paper are some of the work carried out on a few selected sites but similar work has been carried out on other sites such as Penjom, Granny Smith and Agnew. This work has eventuated in several installations which we believe have great importance in the future of the gold processing industry. They will lead the way forward to the modern all-gravity plants of the future.Compared to flotation, for the recovery of sulphides, gravity is a simple option. The simplicity generally translates to low capital and operating cost."

Jan 1, 2004

By P. C. Holloway, A. Tshilombo, T. Xue, M. J. Collins, R. Lopetinsky, I. Mihaylov, I. M. Masters

The Voisey’s Bay deposit contains a trace amount of cadmium, which reports to solution during pressure leaching of the nickel concentrate at Vale’s Long Harbour Hydrometallurgy Plant, and must be removed to produce high quality nickel cathode. In 2006, Vale approached Sherritt Technologies to collaborate on the development of a process for removing cadmium to low levels (<1 mg/L) in the nickel raffinate. Following successful bench scale and pilot plant testing at Sherritt’s laboratories, the cadmium removal process was then moved through engineering and construction, culminating in the successful commissioning and startup of a cadmium removal circuit at the Long Harbour Hydrometallurgy Plant in 2017. This paper presents the results of this collaboration and the challenges that were encountered through each stage of development, as well as current results from operation of the commercial cadmium removal circuit. INTRODUCTION Vale’s Long Harbour Processing Plant, with a nameplate capacity of 50,000 t/y nickel, began operation in 2014. In addition to electrolytic nickel rounds, the plant also produces electrolytic cobalt rounds and copper cathode. The Long Harbour Processing Plant uses a unique hydrometallurgical process developed by Vale Base Metals Technology Centre, as shown in Figure 1, to treat a nickel sulphide concentrate produced at the Voisey’s Bay mine and mill located in northern Labrador (VBN concentrate) (Stevens et al., 2009).

Jan 1, 2019

By M. H. B. Nasseri

Barre granite?s samples have been tested for fracture toughness under mode I along two different directions with respect to microstructural fabrics were investigated. 3D objects counter algorithm technique is applied on micro CT images to identify physical properties such as crack induced porosity, crack density, generated total surface area and contribution of individual mineral grains within the damaged zone.The result obtained justifies very well the fracture toughness anisotropy in Barre granite, and explains the difference in the structure of the damage zone evolving as a result of test crack interacting with pre-existing microstructural fabrics. The present study has potential application in the fields of rock mass stability, oil reservoir stimulation, rock fragmentation and damage in blasting and emplacement of dykes.

May 1, 2009

By J. -F. Lessard

Most underground mines rely on ore pass systems to ensure the transport of ore and waste. The design and operation of ore pass systems often rely on past experience, which is often anecdotal and at times contradictory in nature. This paper summarizes the current practice in Quebec underground metaliferous mines. The information was collected during a series of site visits in ten underground mines. The database includes information on ore pass configuration, support, materials transited, and overall ore pass performance.

Jan 1, 2006

By E. O. Abrokwah

Directionally solidified (DS) Rene 80 Superalloy was tested in thermo-mechanical fatigue (TMF) over the temperature range 500-900°C and plastic strain levels from 0.2 to 0.8% using a DSI Gleeble thermal simulator. Thermo-mechanical testing was carried out on the parent material in the conventional solution treated and aged condition (STA), as well as gas tungsten arc welded with an IN-738 filler, followed by solution treatment and ageing. Comparison of the base TMF unwelded alloy with that of the welded and heat treated alloy showed that varying crack initiation mechanisms, notably oxidation either by stress assisted grain boundary oxidation, or associated with grain boundary MC carbides fatigue crack propagation along grain boundaries and creep deformation were operating, leading to different "weakest link" failure initiation points.

Jan 1, 2011

By R. B. Barlow, J. A. C. Fortescue

Originally developed for use in mineral exploration, regional geochemical mapping based on stream (and lake) sediment sampling is showing broader application in other areas of the earth sciences and in environmental science. The purpose of this paper is to focus attention on the role of regional geochemical mapping in relation to geological and environmental studies. This is achieved using a descriptive equation for the chemical composition of a stream-sediment sample and then relating it to the use of successive approximations in geochemical and environmental investigations. The procedure is further qualified with reference to time and process in the formation of regional geochemical patterns. Examples are included of studies based on stream sediments related to bedrock geology, surficial geology, ecology and man&apos;s effect on the geochemistry of the environment. The range of applications of regional geochemical mapping in earth and environmental studies is outlined and some conclusions drawn regarding the future development of geochemical mapping under Canadian conditions.

Jan 1, 1980

By Y. Bai, J. J. Liu, D. Q. Li, S. Z. Liu, X. T. Wang

"This paper presents the results of an industrial test using 8 t/d of Baotou concentrate (50% REO) of a clean metallurgical process, which includes: 1. Roasting with H2SO4 at low temperature (220~260 0C) in a batch roasting furnace followed by water leaching to obtain a leach liquor as feed with a yield of >95% RE and Th, recovering F as fluoride, producing a leach residue amounting to 1/3 of an equivalent high temperature residue and containing <0.03% Th and radioactivity < 3×104 Bq/kg compared to the normal high temperature residue containing 0.2-0.3% Th and 1×105 Bq/kg. 2. Separating Th with N1923 and extracting RE by P507 has been completed in mixer-settlers. Test results indicate that the ThO2 product has a purity of > 95% with a yield of 99%, and the RE has a yield of >95%, in which ThO2/REO <5×10-6, and that P507 loaded RE connect straight with separating RE using P507-HCl system. 3. Treatment and multipurpose use of "three wastes" (water, gas and solids) are discussed in some detail."

Jan 1, 2014

By Phillip J. Mackey, Gerardo R. F. Alvear F.

It is now 38 years since the publication of the first edition of "Extractive Metallurgy of Copper" by Professor W.G. Davenport and the late Professor A.K. Biswas. The text book would be issued in a total of five editions, soon became the standard for students and those in industry. Interestingly it was published at the onset of great change in the industry. This was a time when sulphur dioxide controls in the USA were introduced, and almost simultaneously, world oil shocks caused significant increases in the cost of fuel - all leading to efforts to adopt new technology and move away from the reverberatory furnace, which had no potential for sulfur capture and required large amounts of fuel. At the time of publication of the book, new processes such as the Noranda Process and the Mitsubishi Process were in their infancy, while flash smelting (which was first commercialized in 1949 at Harjavalta, Finland) had made significant in-roads in boosting copper output, with some 22 new flash smelters licensed by 1976. Computer technology and associated process control techniques were rudimentary compared to systems today, available physico-chemical data remained largely in tabulated format and needed to be manually entered into the main frame computers of the era, while modeling techniques common today had not yet been developed. The copper industry has therefore seen immense changes since the time of this textbook: world tonnage of smelted copper has risen from 7.34 million tonnes/year in 1976 to 16.7 million tonnes/year in 2012, over a two times increase. Technologies such as the El Teniente Process, or Top Submerged Lance technologies, typified by the ISASMELTTM, not commercialized at the time, now treat large tonnages of copper concentrate in a single furnace. Advanced heat and mass balance software and thermochemical modeling are now used extensively to examine chemical and physical characteristics for process design and to support process optimization. These changes in the industry have been chronicled in subsequent editions of the book. This paper looks at the issues and problems seen in 1976 and over the intervening years, and compares this with the challenges facing the industry with the available tools and technologies today. Some ideas looking into the future are also discussed in the paper.

Jan 1, 2014

By Francis Chachula, Niel Erasmus

"In 2002, Titanium Corporation Inc. focused its attention on the development of a process for the recovery of valuable heavy minerals, including zircon and titanium bearing minerals from oil sands froth treatment tailings. The development of a process flowsheet to recover the titanium and zircon minerals from the Athabasca oil sand tailings has evolved through many laboratory, bench and pilot scale iterations.Initial development work focused on so-called ‘beach sand’ material, which is tailings material deposited over a period of time close to the tailings pipe discharge. The derived process flowsheet primarily consisted of gravity concentration stages, which is typical of all mineral sands operations. Titanium Corporation’s business plan calls for the utilization of tailings directly from the tailings pipeline – the process developed around the beach material is therefore risky as it differs from the live tailings in a number of aspects, with the effects on the process unknown. Titanium Corporation successfully obtained an intermediate product through a ‘bulk sampling plant’ coupled directly to an Oil Sands operator’s froth treatment tailings pipeline, during the summer of 2005. Subsequent further processing of this material resulted in poor separation or concentration of the heavy minerals due to a number of reasons. A more effective process flowsheet had to be developed.The newly derived process is basically a marriage between mineral sands technology and oil sands technology that can economically concentrate and recover the heavy minerals and entails the incorporation of a flotation process that takes advantage of the entrained bitumen in the feed to separate the heavy mineral fraction from the quartz gangue This paper will describe the newly derived process as well as the successful results of a subsequent on-site concentrator pilot campaign completed during the 3rd Quarter of 2006."

Jan 1, 2008

By John R. Goode

"The year 2011 witnessed a major surge in rare earth prices as China, supplier of +95% of the world’s rare earths, reduced export quotas and increased export taxes and duties. In response, companies around the world are scrambling for alternative sources. In Canada too, there is a race to be the “first” rare earth producer. Something that is not generally realized is that Canada has a long history of rare earth production and was a major supplier from the early 1960’s to 1990. At one stage, Canada was said to be supplying more than one third of the world’s yttrium and probably supplied even more than that. Five decades ago, thorium was a key element in many non-nuclear applications and Canada became a major supplier of thorium from the late 1950’s to 1968, first as a by-product of uranium and then as a co-product of rare earths. This paper reviews the development of Canada’s original rare earth and thorium production facilities, which were located in the Elliot Lake uranium camp in Northern Ontario. The uses of these elements, geology, mineralogy, markets of the time, and processing are all discussed. Some of the lessons learned from these pioneering operations might be useful in today’s race to develop the next generation of rare earth production plants.INTRODUCTION The rare earths and thorium were first identified in the early 19th century but were little more than curiosities for the next century. However, in the mid-1960’s the invention of rare earth-based phosphors for the cathode ray tube in colour television sets launched a major demand for certain rare earths. The use of thorium as an alloying agent in aircraft and missiles grew rapidly in the late 1950’s. In the same period, demand for uranium for both weapons and power production soared. Also in the late 1950’s, the Elliot Lake uranium-thorium-rare earth deposits (also known as the Blind River deposits) were discovered. This conjugation of events led to uranium production in the Elliot Lake camp, quickly followed by the co-production of thorium and, later, the rare earths. Uranium production in the Elliot Lake camp continued from 1955 to 1996. Thorium was produced continuously from 1959 to 1969. Rare earths were produced, intermittently, from 1965 to 1990. Complete production records are not readily available for thorium and the rare earths but unquestionably Elliot Lake production made a significant contribution to world production. This paper is intended to present as much of the information that is available."

Jan 1, 2012

By T. Holmes

Investigations reveal that the throughput difference between a perfect production day and the average is often on the order of 40%, and that bulk solids handling system deficiencies are the largest (>50%) class of lost opportunities. Root causes for underperformance of elements in material handling systems can often be traced back to the detailed design and even study-stage oversights. To reduce or eliminate bulk solids handling problems in an existing system requires an analysis of troublesome handling equipment – for example, a concentrate transfer chute that experiences plugging, poor flow to the furnace, unacceptable dust generation, and spillage. These problems often lead to significant maintenance costs related to downtime and personnel time. Understanding the cause and cost of flow issues is the first step in troubleshooting the problem. Next, measuring the material’s flow properties is critical to providing design data required to develop a comprehensive scientific solution. In the case of a new installation, the design data is required to properly design the system right first time and prevent flow problems from occurring so that the new equipment works correctly from start-up. This paper highlights the cost of material handling problems and discusses the best approach to evaluate material handling system deficiencies. A case study is given of how Anglo American's operation in Barro Alto Brazil enjoyed a 5-month payback from a bulk solid transfer chute debottleneck project. INTRODUCTION When operating a plant or designing a greenfield or brownfield operation, the intent is to have perfect production days (PPD) each and every day. Money is made by moving material through the plant in a controlled manner to produce the desired product. Mining operations and copper concentration processes are at the most basic level a practice in bulk solids handling (BSH). Unfortunately, many of the project planning steps are overlooked, particularly related to BSH. Investigations reveal that the throughput difference between a PPD and the actual average is often on the order of 40%, and that BSH system deficiencies are the largest (>50%) class of lost opportunities (Wellwood, 2017). Root causes for underperformance of elements in material handling systems can often be traced back to the detailed design and even study-stage oversights. BSH issues are essentially baked into the fabricated plant and left to operations to accept the deficiencies and deal with them for the life of the mine. These deficiencies then become part of the normal operation of the mine and plant.

Jan 1, 2019

Many mines in Canada, the US and S. Africa are reaching the hoisting limit. Very little payload will be possible without compromising safety due the excessive weight. It has been suggested (DeLorme, 2000), that one of the most attractive concepts to enable deeper hoisting is to reduce the allowable factor of safety in the wire rope. Researchers at the Spokane Research Lab are developing new technology to improve hoisting safety and productivity by providing new monitoring and analytical tools. A Shaft Conveyance Monitoring System (SCMS) has been developed which determines hoist rope end load, true conveyance position and acceleration, and rope safety factor, as well as other hoist operating parameters. This information is transmitted to the hoist operator display 20 times per second. Recent field measurements on 45 mm(1 ¾ in.) diameter hoist rope indicate that dynamic forces during loading of a 9000 kg(10 ton) skip may exceed the safety factor of the rope. To improve on the current understanding of the mechanical behavior of hoist ropes, and to help interpret the results from field-testing of the SCMS, a new approach to computer modeling of stranded wire rope is also being developed. Particle Flow Code, PFC3D (Itasca 1995b) is used to simulate the structural behavior of wire rope and the interaction between individual strands when the rope is subjected to static and dynamic end loading. Details of the SCMS, field results from the measured rope loads, and the results of numerical modeling on the wire rope will be discussed.

May 1, 2002

By Glenn S. Dobby, Glenn A. Kosick

"Column flotation circuit engineering has matured to a good level of understanding regarding testing, scale-up and design. Some of the factors important to the process of implementing columns are addressed in this paper, highlighting the following issues• operating bias and the maximum achievable solids carrying rate for a column application.• internal circulating loads of full scale and pilot plant flotation columns• short-circuiting oflarge scale columns and the impact on separation selectivity• the number of stages in a column circuit and the impact on selectivity.The paper uses several case studies, from pilot plant to full scale implementation, to illustrate these design issues.1. IntroductionTen years ago, in 1984, there were very few column flotation installations world wide and the largest columns were about I . 5 to 2 m diameter or square. During the following decade there have been in the heighbourhood of 80 column installations that have been successful and profitable, as both retrofits and green-fields plants. Now, columns as large as 3 to 4 m are not uncommon. Examples of installations with many large columns include Escondida, with ten columns each at 4 m square, and P T Freeport Indonesia, with 21 columns: nine 3 m diameter columns, four 2.4 m diameter columns and, starting up in April I 995, eight 3.6 m diameter columns.During this growth period there have also been column installations that can be considered as failures. In the majority of these cases, the reason for their failure has been an insufficient installed capacity for applications where there is a high weight recovery of solids to the froth product These include zinc cleaning, copper cleaning and iron ore flotation (silica flotation from a feed that is 15 to 30 %Si02) An application with high weight recovery to the froth product makes column scale-up and circuit design more complicated. This is particularly so if a high degree of selectivity is also required while attaining a high weight recovery, which can happen with iron ore flotation in columns."

Jan 1, 1995

By Bern Klein, Randy Blaskovich, Reem Roufail

"Morphology is a tool that is rarely used for mineral breakage mechanism evaluation. Ground particles are typically assessed for their size distribution. They are also visually analyzed using image analysis. However, image analysis is not a comprehensive evaluation of the particle surface texture. It evaluates particle’s size parameters such as area, diameter, and perimeter amongst other features. On the other hand, morphology analysis takes the particle assessment to another level of detail. Morphology analysis evaluates particles’ roundness, elongation and angularity that would indicate the degree of roughness of the particle. According to Roufail and Klein (2009), rougher surfaces are generated due to breakage along grain boundaries – intergranular breakage. Mill operation, particularly mill speed, dictates the dynamics in the mill. Stirred mills are known to break the particles via abrasion under standard operation. However, if the dynamics of the grinding media in the mill are changed, the particles could be more exposed to impact and compression loading that would lead to a different mode of breakage.In this paper, the effect of material properties and mill operating conditions on particle morphology will be studied. Hard non-sulfide versus soft sulfide minerals are compared, namely quartz and galena, respectively. Extreme mill speeds are tested covering the range of 1000 to 2000 rpm for a 4-litre Netzsch (ISA) mill. In addition to particle size distribution, micro-analysis is executed in the form of morphological analysis using a tested manual roughness point counting technique.INTRODUCTIONGrinding in general and stirred milling in particular are processes that are used to break particles to liberate metal-bearing minerals for further separation downstream. The energy required to achieve the target particle size versus maximum possible liberation has been studied intensively and it is usually the breaking point for the grinding system chosen in a process flowsheet. Operating conditions are dictated by the energy consumption. Becker et al. (2001) related different forms of energy such as input, specific, volume/mass specific energies to stress intensities and final product fineness. Other research studies focused on energy input in a stirred mill (Zheng, Harris and Somasundaran, 1996)."

Jan 1, 2011

By H. Zhu, Y. Sato, O. Takeda, K. Nakano

Recycling of rare earth magnet wastes is essential to insure the stable supply of rare earth resources. For the development of a novel recycling process, the removal of rare earth oxide from an off-spec alloy magnet was investigated by melting the alloy magnet at 1503 K together with fluoride flux, LiF-50 mol% NdF3 and LiF-?25 mol% NdF3-25 mol% DyF3. After melting, the separation of magnet alloy from the fluoride flux was achieved, and neither suspension of alloy in the flux nor suspension of flux in the alloy was observed. Oxygen concentration in the alloy decreased from 5000 mass-ppm to 160 mass-ppm by utilizing 1.5 times of equivalent amount of flux needed to completely dissolve the oxide. The investigated process is suitable for mildly contaminated waste such as a used (end-of-life) magnet because of its simplicity, low energy consumption and small limitation on location for operation.

Jan 1, 2014

By Mostafa Benzaazoua

Les remblais en pâte cimentés sont de plus en plus utilisés dans les exploitations minières souterraines. Une autre alternative d?utilisation du remblai en pâte consiste à le pomper et à le stocker dans des empilements de surface. En plus d?avoir des avantages d?un point de vue de stabilité physique des ouvrages, le remblai en pâte cimenté en surface permettrait également de stabiliser les contaminants dans la matrice du remblai à l?aide du processus de solidification et de stabilisation. Dans cette étude, des remblais en pâte constitués d?un résidu minier sulfuré renfermant beaucoup d?arsenic et de différents liants ont été testés afin d?évaluer la stabilisation des contaminants dans la matrice de remblai. La méthode utilisée pour évaluer la stabilisation et la solidification des contaminants est le test de lixiviation en extracteur de Soxhlet. Les résultats géochimiques issus de ces essais ainsi que la caractérisation chimico-minéralogique des remblais lixiviés ont été analysés pour comprendre les phénomènes chimiques présents dans les remblais durant le temps de cure. Les résultats obtenus montrent que les sulfures présents dans les remblais étudiés (pyrite FeS2 et arsénopyrite FeAsS) s?oxydent et provoquent la dissolution des hydrates les plus vulnérables (dissolution de la portlandite Ca(OH)2 et/ou décalcification des gels CSH). Le calcium produit permet de précipiter les sulfates (essentiellement sous forme de gypse plus ou moins hydraté) et l?arsenic sous forme d?arséniates de calcium plus stables. Les différents liants utilisés donnent des résultats différents en termes de stabilisation et de solidification qui seront discutés dans cet article.

Nov 1, 2002

By S. Mostaghel, S. Nicol, M. Y. Solar

Once upon a time, the process engineer developing the design criteria for a new saprolite ferronickel smelter had it easy: most ores were around 2.5% Ni, with a Fe/Ni ratio of 4 to 5 and a SiO2/MgO ratio of about 1.6; to use the French word: garnierites. The ferronickel grade selected was the conventional 20 to 25% Ni and the impurity levels could be predicted from well established [C], [Cr] and [Si] vs (FeO) graphs. However the process engineer can no longer depend on statistics to design smelters: Ni grades are decreasing while the goethite contents are increasing; SiO2/MgO ratios vary from 1 to 3; and Al2O3 concentrations are reaching levels that cannot be ignored. Mechanistic models must be developed to select or predict essential parameters such as kiln and furnace reductions, ferronickel grade, slag losses, metal and slag liquidus, operating temperatures, etc. But these models must be simplified so that they can be used on a routine basis; and they must be calibrated against a wide range of commercial operations in order to yield the most realistic predictions possible. The present paper proposes one possible approach, using FactSage as a basic source of thermodynamic data. The predictions thus obtained are compared to actual performance for two well documented operations, as well as to the predictions made with other tools that might be more accessible.

Jan 1, 2014

By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011